Letter Of Guarantee: Fill & Download for Free

The business model of financial services, primarily banking will undergo a major shift soon. The next big thing would be 'Contextual Banking' supported by technology (Blockchain, Open API, Social Mining, fintech startups), government and finance/risk professionals (innovating new regulatory models), marketers (creating new digital experiences) and data scientists (mining customer behaviours)Contextual banking will radically change the way banking is done now. It’s an evolving model, where financial products and services come to you at the place and time of need—and where you will not be asked to go out of your way to financially enable your life goals. This would be a fundamental shift. Banking will become life enablers where services are delivered in a contextual and embedded fashion across a variety of channels consistently. Banks create digital customer experiences based on your context with the help of data and technology while risk experts will ensure that these transactions are smooth, pro-regulatory and secure.Technologists, Data Miners, Digital Experience Experts and Risk professionals will be architecting our future banksAn example scenario to quote - You'll get up in the morning, where an Amazon Echo (call centre will be dead by then) - a small speaker-look-like-device at your coffee table - will be conversing with you upon authentication about your financial goals, stock market investments, international remittances, peer-to-peer payments, payment reminders, delivering e-tickets for your metro based on traffic conditions. You will not require personalized relationship managers, contact centres or branches to manage your financesAnother parallel trend would be every retailer will become bankers. Considering the fast and furious Fintech scene now, you do not need a 'Bank' to do basic banking services. Every retail outlets will act as a bank and selling banking services. Fintech companies are already doing great work at debt funding platforms, equity trading mechanisms and payment processing hubs, and we can see fast adoption and acceptance of this new way of banking servicesThis means a completely new engagement model is emerging, driven by change in technology, customer expectations and a competitive landscape. Few key drivers that will contribute to this change follows1. Blockchains are emerging as a strong and secure digital record keeping method. Nasdaq started using blockchain technology in its private stock market for secure record keeping, one of the world’s largest, and potentially shake up systems that have facilitated the trading of financial assets for decades. How can block chain technology change existing banking processes?The power of blockchain comes from the fact that it can process transactions in a secured fashion and creates a perfect and reliable digital record. NASDAQ's recent experimentation is awesome. Blockchains will revolutionize payment industry, trading and security management2. Omni-channel customer experiences In current world, banking is delivered through branches, contact centres, ATM, internet banking, mobile banking etc. In future, all these channels will team up together and provide a single and consistent customer experience. Utilising intelligent strategies to integrate disparate digital and physical channels into a single, seamless experience to provide banking services to customers will be top priority for banks3. Good bye Sales people. Welcome Social Selling - The biggest disruption due to contextual banking will be replacement of direct sales force and relationship managers from banks. Those hefty incentives and commissions will turn to fee income for banksInstead, selling (product offering by bank) will be delivered at any channel or place the customer is available, this will be achieved by converging social, cloud and data. Understanding and Leveraging Social Data will be a new Social phenomenon, along with other trends, will shift the balance of power to consumers, accelerating the need for greater engagement.4. Capital and Regulatory Bodies will be more innovative - Global regulation of capital, liquidity and related stress-test requirements, as well as enhanced prudential standards are few critical constraints which banks are fighting now to innovate. Risk and Finance professionals along with government bodies will eventually innovate new securitisation structures and regulatory standards. This dimension is the most important and disruptive are which will undergo major reformation to create new banking experience. The move of US in accepting digital currencies is a classical example and forward thinking step towards regultory innovation5. Commercial and Wholesale Banking will go digital - When it comes to digitalization, everyone speaks about retail banking because commercial banking processes are more mundane and complex to change. Most commerciel banking products are sophisticated such as letter of guarantees, bonds, forwards, discounting, margins, factoring, trade finance etc. and these will be operationally simplified and delivered over online. There is a lot of documentation and contracting process are in place to offer these sophisticated products to customer, where in future these will be delivered digital across channels, and high likely banking will be embedded in corporates business models - where purchase and accounting happens over the cloud. Currently major wholesale banking players like HSBC, CITI, Morgan Stanley already started to deliver digital solution deliveries to huge corporatesFinancial space is changing a lot in all areas such as regulation, technology, compliance, demographics, changing customer expectations, rise of millenials and competition from fintech. As customers became increasingly disappointed and confused with their banking experience. At the same time, they've became increasingly comfortable with going through their favourite social network or retail provider to buy financial services.We have already started experiencing new ways of payments, microfinancing, investment advice, money management, trading etc. - this will eventually expand to all size and shape of financial offerings!

Global payments and cash management is a relative unglamorous function in the universal banking space, however with the slipping fortunes of the investment banking space, banks are turning to this function on eager earnestness.Actually, there are two major products this business line specialises, one is trade finance and correspondent banking and the other is cash management.Trade finance is the whole wide universe of products concerned with documentary credits like letters of credit, guarantees, bills etc. Often they have specialist service lines catering to needs such as commodity based trade finance, global bills collection etc.Correspondent banking is the name given to relationship banking arrangements, one bank makes with the other to act on behalf of the other especially in territories the other does not operate. The work includes cheque collection, vostro management, documentary credit advisory etc.Cash management is a proposition offered by banks to large and small corporates to outsource their entire banking needs, the bank will receive all their collections, process and make the payments, deploy surplus into deposits or funds, generate mis etc.A career opening with global majors like HSBC will give you very important learning in how banking happens throughout the world. I have observed that people with good experience in the topics have leveraged it quite well and made vertical and horizontal jumps within and across the industry.However, as I said, it is not as glamorous as the I banking cousin and the pay will not that be great, but the learning will stand you in good stead.

Along the various supply chains, blockchain and distributed ledger technology (DLT) will raise consumer trust, improve manufacturing and asset management and sharing, allow for secure machine to machine interaction, and accelerate document processing and financial transactions. Below, I have listed some application areas and examples which are taken from two of my articles, one published on the World Economic Forum Agenda and one at Port Technology International.Important is not to get hung up by our own technical curiosity or even doubt in the work-ability of blockchain technology. Let’s assume blockchain will keep its promises. But what is it? Blockchain and blockchain-based DLT ensures that records can’t be duplicated, manipulated or faked. Let’s also assume it can be scaled. Of course, everything is hackable but blockchain makes it extremely difficult to do so.The new source of trustIn the supply chain, blockchain and DLT can increase visibility and transparency to promote an unprecedented level of manageability and trust. Companies and applications are working on new application for the technology: Provenance, for example, applies DLT to help companies to build trust across the supply chain by making it transparent where products were made, by whom and with what environmental impact. The company BlockVerify helps companies to fight product counterfeiting. Everledger assists companies in recording and tracking the movements of diamonds from the mine to the store - traditionally, buyers rely on paper, which can be changed or tampered.Manufacturing of a different kindBlockchain combined with 3-D printing allows the creation of secure digital memories for products and each part of the products. The immutable records from the source of the raw materials used, to where and how products were manufactured, to their distribution, maintenance, repair, recall and recycling histories can be a vital component of supply chain 2.0.Automation at its bestThanks to DLT, machines can do business with machines. Hence, blockchain brings automation to the next level. Electric vehicles can pay recharging, truck parking, tolls and fuel fees based on smart contracts with a blockchain-enabled digital wallet. E-wallets can also collect fees for equipment-sharing. Smart contracts are agreements between parties stored on a blockchain. Smart contracts work on the basis of standard templates and can, for example, refund deposits and perform instant collection of taxes and customs duties as well as take over the burden of regulatory reporting.Asset management and controlOwners and operators of assets can log and monitor tools and devices such as trucks, chassis, scanners and any kind of equipment on the blockchain, which offers in this way attractive cost savings, through increased security and new efficiency gains. Sharing of assets along the supply chain will become easier, safer and more efficient.Accelerator of document processingBarclays reported the first blockchain-based trade-finance deal in September 2016. The transaction guaranteed the trade of almost $100,000 worth of cheese and butter between Irish agricultural food co-operative Ornua and the Seychelles Trading Company. The process – from issuing to approval of the letter of credit, which usually takes between seven and 10 days – could be reduced to less than four hours. Other banks are also exploring ways blockchain technology can improve processes along the supply chain. In August 2016, banking consortium R3CEV reported that 15 of its members had joined a trade finance trial to test its distributed ledger protocol, named Corda. Also in August, Bank of America, HSBC and the Infocomm Development Authority of Singapore (IDA) revealed that they had built a blockchain application to improve the letter of credit (LC) transaction process between banks, exporters and importers.Trade revolutionIBM and Maersk announced a collaboration to use blockchain technology to help transform the global, cross-border supply chain. Blockchain solutions can make sharing of information between trading partners more secure and help manage and track the paper trail of tens of millions of shipping containers globally by digitizing the supply chain process from end to end along the supply chain.I am convinced that independently from the time to realization, the hurdles to overcome, the final shape and form of the distributed ledger and blockchain technology, the different players and stakeholders in the supply chain ecosystem will significantly benefit just from exploring this central tool of the digital economy. Alone, the knowledge gathered and new relations built along this road – for example, with fintech and other tech companies – should justify the effort and help also the supply chain industry to navigate the Fourth Industrial Revolution.